Correlation Between BMO Equal and Hamilton Gold
Can any of the company-specific risk be diversified away by investing in both BMO Equal and Hamilton Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BMO Equal and Hamilton Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BMO Equal Weight and Hamilton Gold Producer, you can compare the effects of market volatilities on BMO Equal and Hamilton Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BMO Equal with a short position of Hamilton Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMO Equal and Hamilton Gold.
Diversification Opportunities for BMO Equal and Hamilton Gold
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BMO and Hamilton is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding BMO Equal Weight and Hamilton Gold Producer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Gold Producer and BMO Equal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BMO Equal Weight are associated (or correlated) with Hamilton Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Gold Producer has no effect on the direction of BMO Equal i.e., BMO Equal and Hamilton Gold go up and down completely randomly.
Pair Corralation between BMO Equal and Hamilton Gold
Assuming the 90 days trading horizon BMO Equal Weight is expected to generate 1.16 times more return on investment than Hamilton Gold. However, BMO Equal is 1.16 times more volatile than Hamilton Gold Producer. It trades about 0.12 of its potential returns per unit of risk. Hamilton Gold Producer is currently generating about 0.1 per unit of risk. If you would invest 20,950 in BMO Equal Weight on September 10, 2025 and sell it today you would earn a total of 4,484 from holding BMO Equal Weight or generate 21.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMO Equal Weight vs. Hamilton Gold Producer
Performance |
| Timeline |
| BMO Equal Weight |
| Hamilton Gold Producer |
BMO Equal and Hamilton Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMO Equal and Hamilton Gold
The main advantage of trading using opposite BMO Equal and Hamilton Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMO Equal position performs unexpectedly, Hamilton Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hamilton Gold will offset losses from the drop in Hamilton Gold's long position.| BMO Equal vs. BMO Equal Weight | BMO Equal vs. BMO MSCI India | BMO Equal vs. BMO Equal Weight | BMO Equal vs. BMO MSCI China |
| Hamilton Gold vs. Hamilton Energy YIELD | Hamilton Gold vs. iShares MSCI Canada | Hamilton Gold vs. Global X SP | Hamilton Gold vs. AGFiQ Market Neutral |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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